Report finds issues with reliability of government’s financial statements, improper payments
An auditor for the Government Accountability Office told lawmakers Wednesday that in the next few years the federal government will owe more than our entire economy produces.
Gene Dodaro, the comptroller general for the Government Accountability Office, testified at the Senate Budget Committee to provide the results of its audit on the government’s financial books. Continue reading
Usually, one goes to college to learn a productive skill. A recently reported “fraud school” in China, however, fills a lucrative niche by teaching small companies how to fabricate their financial statements so they can enter U.S. capital markets and harvest millions of dollars from unsuspecting investors.
The school was featured in a Chinese newspaper article in early April. The piece, titled “Unmasking the Disaster of ‘China Concept’ Stocks,” refers to an unnamed fraud school that it says is under investigation by Chinese police. The author is listed as John Caines, whose affiliations are not stated. The newspaper that printed the article, Fortune Today, did not respond to an email enquiring about Caines’ identity.
The “fraud school,” which is actually an investment bank, counsels Chinese enterprises that want to make quick money on how to game the stock market in the United States, the article says. The elaborate system of fraud includes faking sales contracts, fabricating government filings, and massaging financial statements. These documents are then given an imprimatur of credibility with the help of a cooperative auditor. At this stage the company is still private, in China.
Full article: Chinese Companies Go to Fraud School (The Epoch Times)